You just been hired as the general manager of Green Company which is a distributor that has an exclusive franchise to sell a particular product SD. You gathered the following information about the last two years:

		2017	2018
	Units sold	200,000	160,000
	Sales revenue	$1,000,000	$800,000
	Less cost of goods sold	$700,000	$560,000
	Gross margin	$300,000	$240,000
	Less G& Adm. expenses	$210,000	$198,000
	Operating income	$ 90,000	$ 42,000

Required:

1. Use the provided information to find out how much of Greens costs & expenses are variable & how much are fixed.(Hint: Use the high-low method)

2. Compute the Green's total contribution margin for year 2018.

3. How many units you need to sell in year 2019 if you want to achieve a target profit of $80,000.